【Paris, Franc】LVMH: With Doubled Growth in China, British Brand Burberry Offers a Sigh of Relief to the Entire Luxury Sector on the Stock Market

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Editor’s Note

This article highlights the immediate market pressures facing the luxury sector, triggered by renewed transatlantic trade tensions and specific tariff threats from the Trump administration.

Burberry monte en Bourse
Luxury Sector Under Pressure

The luxury sector did not start the stock market year under the best auspices. The sector has been weighed down since Monday by new tariff threats from Trump.
Faced with European refusal to see the US take over Greenland, Donald Trump indicated he wants to impose additional tariffs of 10 percentage points on eight European countries including France, starting February 1st.
The next day, the White House occupant threatened to impose 200% tariffs on French wines and champagnes, a threat Trump reiterated this Wednesday in Davos (except he spoke of a 100% rate, not 200%).

“The problem is that if Trump attacks wines and champagnes, it could very well be cheese and then luxury,” explained an analyst.
Richemont Concerns

Last week, luxury stocks already wobbled after Swiss Richemont (Cartier, Van Cleef & Arpels) reported its quarterly activity. Although the Swiss group posted sparkling growth in its jewelry division, the entire sector declined on the stock market.
Some analysts pointed to concerns about Richemont’s margins due to unfavorable currency effects and soaring gold prices.
But Morgan Stanley attributed the fall in Richemont’s stock and the entire sector more to China.

“As industry watchers know, the main reason Richemont’s stock retreated after reporting very strong quarterly sales is due to investor perception that progress in China was poor (mainland China showed a negative year-on-year performance for the group in the fourth quarter),” pointed out the American bank.
Burberry’s Report Alleviates Concerns

Burberry’s publication comes to alleviate these concerns. The British leather goods maker, currently in a phase of sales and results recovery, published this Wednesday its activity for the third quarter of its fiscal year ending 2026, the period from October to end of December.
Burberry recorded comparable sales growth of 3%, exceeding analyst expectations. According to Citi, the consensus (average analyst forecast) was at 2%.

Burberry Reassures

Most importantly, Burberry reported an acceleration of its sales in “Greater China” (China, Hong Kong, Macao, Taiwan) where its sales grew by 6% after a 3% increase in the previous quarter. The company specified that sales were driven by local clientele, “Gen Z” and younger generations.

“This Burberry publication should bring some relief to the luxury sector, given the sequential improvement observed in Greater China,” comments Deutsche Bank, particularly “after Richemont’s indications” last week.
“Burberry delivered a solid Q3 2025/2026, with a 3% increase in retail sales, marking a second consecutive quarter of sequential improvement. Performance was generally good across all regions, with strong acceleration in Greater China and Asia-Pacific,” observes the independent research firm Alphavalue.

On the London Stock Exchange, Burberry gains 5.6% around 16:25. In Paris, luxury stocks regain color.
LVMH advances 2.5%, Hermès gains 1.1% and Kering gains 2.11%.

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⏰ Published on: January 21, 2026